Less parental leave, more childcare: PM

Tony Abbott has taken a hit to his signature paid parental leave scheme, with the prime minister announcing it will be overhauled in order to get it through the Senate.

Mr Abbott announced today that the scheme would be changed, with the government revising the costings over summer.

But prime minister wouldn't be drawn on the specifics of the new package.

Media reports say the government is working on a plan that will mean women earning more than $150,000 a year won't be eligible.

Mr Abbott told News Corp he believed the PPL combined with affordable childcare would get more women into the workforce.

"Paid parental leave will be refined so that help is better targeted towards the hundreds of thousands of low and middle income families across Australia," he said.

The rejigging of Mr Abbott's scheme, which is still to be funded by a 1.5 percent impost on big business, would see the current payout cap of $50,000 lowered, a new means test and the redirection of money to childcare, the report said.